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Published in Gaming

Nvidia still going strong in professional market

by on11 February 2010

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Pro business constitutes 35% of Nvidia's stock

According to an analysis by Trefis, Nvidia's professional business cards division is the biggest money maker in the company and it is responsible for around 35 percent of Nvidia's business.

Discrete graphics account for 18 percent of Nvidia's stock, while integrated graphics make up 12 percent. Bear in mind that shipments of discrete chips and IGPs are 50 and 20 times higher, respectively, than professional card sales. Trefis estimates the average selling price of Nvidia professional cards is 7 to 8 times higher than the ASP of the company's discrete GPUs used in gaming cards.

Last year, the average selling price of Nvidia professional cards was $146, but Trefis expects it to drop to $123 over the next 5 years. However, the average margin on pro cards was 51 percent, while the margin on discrete cards was 19 percent. In light of the projected drop of ASPs in the pro market, Trefis expects Nvidia to increase its margin to 58 percent over the same period.

Nvidia's share in the professional market was 86 percent in 2009, but it is expected to slowly decline over the next several years, mainly due to stronger competition from ATI.

More here.
Last modified on 11 February 2010
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